OneConnect Financial Technology (NYSE:OCFT – Get Free Report ) and Sound Group (NASDAQ:SOGP – Get Free Report ) are both small business services companies, but which is the better investment? We compare the two companies based on analyst recommendations, dividends, profitability, earnings, institutional holdings, valuation, and risk strength.
Volatility and Risk
OneConnect Financial Technology’s beta is 0.61, indicating that the company’s stock price is 39% less volatile than the S&P 500. In comparison, Sound Group’s beta is 1.67, indicating that the company’s stock price is 67% more volatile than the S&P 500.
Profitability
This table compares the net profit margins, return on equity, and return on assets of OneConnect Financial Technology and Sound Group.
Net profit margin Return on equity Return on assets OneConnect Financial Technology -10.33% -10.21% -3.70% Sound Group N/AN/AN/A
Institutional and insider ownership
4.1% of OneConnect Financial Technology’s shares are owned by institutional investors. In comparison, 1.6% of Sound Group’s shares are owned by institutional investors. 25.2% of Sound Group’s shares are owned by insiders. Strong institutional ownership suggests that large asset managers, endowments, and hedge funds believe the company is poised for long-term growth.
Revenue and Ratings
This table compares total revenue, earnings per share, and valuation for OneConnect Financial Technology and Sound Group.
Total Revenue Price to Sales Ratio Net Income Earnings Per Share Price to Earnings Ratio OneConnect Financial Technology $518.92 million 0.12 -$51.25 million ($1.38) -1.20 Sound Group $2.24 billion 0.00 $12.54 million 0.99 2.12
Sound Group has higher revenues and profits than OneConnect Financial Technology. OneConnect Financial Technology’s price-to-earnings ratio is lower than Sound Group’s, suggesting that OneConnect Financial Technology is currently the more affordable of the two stocks.
Analysts’ comments
Here’s a summary of the most recent valuations and target prices for OneConnect Financial Technology and Sound Group from MarketBeat.
Sell Rating Hold Rating Buy Rating Strong Buy Rating Rating Score OneConnect Financial Technology 0 0 1 0 3.00 Sound Group 0 0 0 0 N/A
OneConnect Financial Technology currently has a consensus price target of $7.00, suggesting an upside potential of 324.24%. With OneConnect Financial Technology’s upside potential being high, equities research analysts clearly consider OneConnect Financial Technology to be a better buy than Sound Group.
summary
Sound Group outperforms OneConnect Financial Technology on nine of the 13 factors comparing the two stocks.
About OneConnect Financial Technology
(Get your free report)
OneConnect Financial Technology Co., Ltd. provides cloud platform-based Fintech solutions, online information and operation support services for financial institutions in the People’s Republic of China. It operates in the areas of technology solutions and virtual bank business. The company offers the Gamma Platform, which provides a toolbox of individual solution modules providing technology infrastructure and underlying technology, the marketing management platform developed from the AI Banker App, the marketing management platform providing bank relationship managers with technology to support retail customer acquisition and relationship management, and the asset management platform providing banks with tools to increase the efficiency of their asset management business. It also provides an intelligent product development platform for banks, enabling them to shorten product development cycles, increase speed to market and facilitate product portfolio management. It also offers Regtech, an end-to-end regulatory solution for financial regulators, asset liability management solutions that provide analytical capabilities to enhance the asset liquidity performance of financial institutions, and digital insurance solutions that digitize insurance processes, marketing, customer management and claims processing under intelligent non-life and life insurance solutions. In addition, the company also offers the Gamma Voice Solution, an AI customer service that supports customer service functions. Gamma FinCloud is a service that enables organizations with legacy systems that are expensive to replace to migrate directly to the cloud and keep their data safe. In addition, the company offers information transmission, information technology advisory, e-commerce security certificate management, technology facilitation and computer applications, software and technology, insurance investigation and claims assessment, asset management and consulting services. The company was founded in 2015 and is headquartered in Shenzhen, People’s Republic of China.
About Sound Group
(Get your free report)
Sound Group Inc. operates as an audio-centric social and entertainment company. It is focused on building an audio platform for connection and communication. The company caters to users’ interests in audio entertainment and social networking through its product portfolio and in-house technology. The company was previously known as LIZHI INC. and changed its name to Sound Group Inc. in January 2024. Sound Group Inc. was founded in 2010 and is based in Singapore.
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